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The “Private Sector” union: Establishing the minimum wage is a good start for reforming the wage system


Shaaban Khalifa, head of the union of private sector workers, said that the decision of the National Council for Wages regarding the implementation of the minimum wage in the private sector, which is set at only 2,400 pounds, as of January 1, 2022, is the beginning of a good step towards reforming the wage system in Egypt, especially after its approval and published in the Official Gazette.


Khalifa added, in a statement today, that the third article of the decision of the National Council for Wages, which stipulates that the minimum value of the periodic annual bonus for the private sector, starting from the fiscal year 2021, according to the accounting fiscal year for each facility, shall be no less than 3% of the insurance contribution wage stipulated in the Social Insurance and Pensions Law, with a minimum of 60 pounds - disappointed the hopes of workers in the private sector.


He continued: The third article of the decision is in violation of the statement issued by the National Council for Wages headed by the Minister of Planning, which was published on the website of the Ministry of Planning, before that, and also in violation of Labor Law No. 12 of 2003, which stipulated that the annual bonus is 7%, and this was indicated In the texts of Articles (Article Three) and (Article 34) of Chapter Three, which is concerned with wages, there is no ambiguity.


Khalifa indicated that with this decision, the National Council for Wages left workers in the private sector, in which approximately 3 million and 735,000 private sector establishments work, and accommodates about 18 million workers, prey to some business owners, so each facility will be according to its budgets and accounts, and without setting up a mechanism By actually obliging employers to implement the decision of the National Council for Wages.


It is noteworthy that Article 3 of the General Provisions section of the Labor Law states: “The workers in respect of whom the provisions of the accompanying law apply are entitled to a periodic annual bonus on its due date, not less than (7%) of the basic wage on the basis of which social insurance contributions are calculated, and that Until the National Council for Wages issues the decisions regulating this allowance.


Article (34) of Chapter Three “Wages Chapter” stipulates that a National Council for Wages shall be established under the chairmanship of the Minister of Planning to be concerned with setting the minimum wage at the national level, taking into account living expenses, and by finding means and measures to ensure a balance between wages and prices.


The council is also responsible for setting the minimum periodic annual bonuses at no less than (7%) of the basic wage on the basis of which social insurance contributions are calculated.

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